14 May 2008 08:06 [Source: ICIS news]
DUBAI (ICIS news)--Saudi-based Methanol Chemicals Co (Chemanol) plans to sell 50% of its shares in an initial public offering (IPO) as part of Riyadh's drive for gas feedstock-based petrochemical producers to go public, official sources from the company said on Wednesday.
Originally founded as Saudi Formaldehyde Chemical Co in the mid-1980s, Chemanol is undertaking an SR1.5bn ($401m) expansion which, when completed by the end of 2008, would raise the capacity of formaldehyde, derivatives and other downstream methanol based products such as plasticisers and resins to 1m tonnes/year.
The production process will be fed by a newly created 200,000 tonne/year captive methanol unit. When fully operational, Chemanol will be one of the world's biggest producers of formaldehyde.Chemanol will offer 60.3 million shares in the IPO, with a portion of the offered shares will be allocated for mutual funds. The company`s shares will be offered during the period from 11-20 August 2008, according to a statement published by the local Capital Market Authority.
The initial subscription price will be disclosed once the book-building process is complete, it added.
($1 = SR3.75)
For more on methanol and formaldehyde visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections